DoD Awards $2.6M for Electronic Connectors to TE Connectivity, Facing Limited Competition
Contract Overview
Contract Amount: $2,609,168 ($2.6M)
Contractor: TE Connectivity Corporation
Awarding Agency: Department of Defense
Start Date: 2021-12-09
End Date: 2026-01-31
Contract Duration: 1,514 days
Daily Burn Rate: $1.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8508728586!CONNECTOR,RECEPTACL
Place of Performance
Location: MIDDLETOWN, DAUPHIN County, PENNSYLVANIA, 17057
Plain-Language Summary
Department of Defense obligated $2.6 million to TE CONNECTIVITY CORPORATION for work described as: 8508728586!CONNECTOR,RECEPTACL Key points: 1. Contract value of $2.6M for electronic connectors. 2. TE Connectivity Corporation is the sole awardee. 3. Potential risk due to limited competition. 4. Sector: Defense - Electronic Connector Manufacturing.
Value Assessment
Rating: fair
The contract value of $2.6M for electronic connectors appears reasonable given the specialized nature of the components. However, without more detailed cost breakdowns or benchmarks for similar high-reliability connectors, a definitive assessment of value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting an expectation of limited competition. This method, while efficient for smaller procurements, can sometimes lead to higher prices than a full and open competition.
Taxpayer Impact: The limited competition may result in a slightly higher cost to taxpayers compared to a scenario with multiple bidders vying for the contract.
Public Impact
Ensures supply of critical electronic components for defense systems. Supports a major defense contractor, TE Connectivity. Potential for increased costs due to limited bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate prices.
- Sole awardee could reduce future negotiation leverage.
Positive Signals
- Contract awarded to established supplier.
- Definitive contract provides long-term supply certainty.
Sector Analysis
This contract falls within the Defense sector, specifically electronic connector manufacturing. Spending in this area is critical for maintaining and upgrading military hardware, with benchmarks often driven by stringent quality and reliability requirements.
Small Business Impact
There is no indication that small businesses were involved in this specific procurement, either as prime contractors or significant subcontractors. Future opportunities should explore avenues for small business participation.
Oversight & Accountability
The use of SAP suggests a streamlined oversight process. Further review would be needed to confirm if adequate checks and balances were in place to ensure fair pricing and performance.
Related Government Programs
- Electronic Connector Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Dependency on single supplier
- Lack of small business participation
Tags
electronic-connector-manufacturing, department-of-defense, pa, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.6 million to TE CONNECTIVITY CORPORATION. 8508728586!CONNECTOR,RECEPTACL
Who is the contractor on this award?
The obligated recipient is TE CONNECTIVITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $2.6 million.
What is the period of performance?
Start: 2021-12-09. End: 2026-01-31.
What is the typical price range for similar electronic connectors under full and open competition?
Determining the exact price range for similar electronic connectors under full and open competition requires access to market research data and historical pricing databases. Generally, increased competition drives prices down. Without specific part numbers and detailed specifications, it's difficult to provide a precise benchmark, but a competitive environment often yields savings of 10-30% compared to sole-source or limited-source awards.
What are the risks associated with relying on a single supplier for critical electronic components?
Relying on a single supplier for critical electronic components poses several risks. These include potential supply chain disruptions if the supplier faces production issues, limited leverage for price negotiation, and a lack of alternative sources in emergencies. This dependency can impact program timelines and increase costs if the supplier's pricing or delivery schedules become unfavorable.
How does the firm fixed price contract type impact overall cost-effectiveness?
A firm fixed price (FFP) contract type is generally beneficial for cost-effectiveness when the scope of work is well-defined, as it shifts the risk of cost overruns to the contractor. For the government, this provides budget certainty. However, if the contractor significantly underestimates costs or if unforeseen issues arise, the FFP structure might prevent the government from benefiting from potential cost savings.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Electronic Connector Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: SPE7M521R0046
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2800 FULLING MILL RD BLDG 38, MIDDLETOWN, PA, 17057
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $2,609,168
Exercised Options: $2,609,168
Current Obligation: $2,609,168
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-09
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2026-01-12
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